Baker Applauds Freeze Israeli Decision On Housing Hailed

July 25, 1992|The New York Times

JIDDA, Saudi Arabia -- Secretary of State James A. Baker III on Friday hailed Israel`s decision to freeze all new settlement building on the occupied West Bank and Gaza Strip, but said more details would be required before the Bush administration decides whether this action meets its conditions for granting Israel loan guarantees.

Nevertheless, from the general tone of Baker`s response, there seemed little question that Prime Minister Yitzhak Rabin`s new approach to settlements will be enough to satisfy Washington to provide Israel with at least some, if not all, of the $10 billion in loan guarantees it is seeking to absorb Russian immigrants.

Baker has told the Arabs on every stop on his Middle East swing that unlike the previous government of Prime Minister Yitzhak Shamir, Rabin is committed to shifting Israel`s priorities from investment in the occupied territories and toward Israel proper.

In a news conference with Baker, Saudi Foreign Minister Prince Saud Faisal, like other Arab leaders, gave only a lukewarm response to the Rabin move.

But all that Washington wants from the Arabs is that they do not make too much of a fuss when President Bush approves some loan guarantees to Israel.

The Arab leaders understand that in this election year, the administration may have to be more flexible with Israel than it might normally be.

Baker said Rabin`s announcement of a settlement freeze did not come as a surprise, as the Israeli prime minister had laid out his plans during their talks in Jerusalem earlier this week.

Rabin said on Thursday in Jerusalem that his new government would freeze all new settlement construction, would cancel 6,681 housing contracts already entered into by the Shamir government on which work had not yet begun, and would complete 8,781 housing units already under way.

He would also go ahead and complete an additional 1,686 units around Jerusalem, the eastern half of which Israel annexed after the 1967 war.

On Friday, Israeli government officials said that the freeze on new construction was a first step that will be followed by other measures to discourage Jewish settlers from moving into those areas.

They said that their commitment to a sharp cutback in future settlement building was more important than their decision on Thursday to permit the completion of thousands of apartments and houses already started on the West Bank and Gaza Strip.